Delivering a Loan Without an Appraisal

Enter “None” for the Appraisal Method if no appraisal is required for the loan and no appraisal was voluntarily obtained. Scenarios where this may occur include when the lender has exercised a DU-issued value acceptance (appraisal waiver) for a High-LTV Refinance or other transaction.

We are transitioning to the term “value acceptance” to replace the term “appraisal waivers” to better reflect the actual process of using data and technology to accept the lender provided value and move away from implying an appraisal is a default requirement.

Note: If a value acceptance (appraisal waiver) was offered by DU, but the lender is aware of factors that make the subject property ineligible, the lender may not exercise the value acceptance (appraisal waiver) offer and must order an appraisal. See the Fannie Mae Selling Guide for a complete list of ineligible transactions, some examples are listed below.

• DU was unable to identify ineligible criteria as listed in the Fannie Mae Selling Guide (for example, Texas Section 50(a)(6) loans).
• The lender is required by law to obtain an appraisal.
• The lender is using rental income from the subject property to qualify the borrower.
• The lender believes that an appraisal is warranted based on additional information available to the lender has about the property or subsequent events that may have materially impacted the condition of the property.

In addition, a lender may not exercise a value acceptance (appraisal waiver) offer if an appraisal is obtained for the transaction.

The following table provides the appropriate values to be entered in Loan Delivery. These fields are located in the Property Appraisal Information section of the Loan Detail screen.

Related Resources

• Loan Delivery application page
• ULDD page
• Fannie Mae Selling Guide